Investment Info:
Small multi-family (2-4 units) buy & hold investment.
I have purchased my first investment property for buy and hold, depending on the market. As of now, my plan for this first step in my portfolio is to renovate, which I have done 50% of so far. When the other half is done, I will be moving out and renting the other unit.
What made you interested in investing in this type of deal?
To add a financial asset that will enable me to save capital to invest in future assets.
How did you find this deal and how did you negotiate it?
I found this deal privately through a co worker, and negotiated. I negotiated as paying full price, but with cash back for renovation, that was not part of the funding deal, it was a separate agreement we did.
How did you finance this deal?
Institution financed, RD loan, owner occupy for 1 year.
How did you add value to the deal?
Renovation, purchased below market value.
What was the outcome?
so far, we have ran the numbers and see a positive cashflow once we rent out both units.
Lessons learned? Challenges?
I got lucky on this deal, because i didnt know how to work the numbers prior. Now I know im in a property that can cash flow, and have a great starter home for future investments.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
i worked with an attorney for the closing docs, no realtor as it was private sale. Brian Stark, would recommend as he has his own portfolio and understands the game.
